TAXATION ADMINISTRATION ACT 1953

SCHEDULE 1 - COLLECTION AND RECOVERY OF INCOME TAX AND OTHER LIABILITIES  

Note: See section 3AA .

Chapter 2 - Collection, recovery and administration of income tax  

PART 2-5 - PAY AS YOU GO (PAYG) WITHHOLDING  

Division 12 - Payments from which amounts must be withheld  

Subdivision 12-H - Distributions of withholding MIT income  

Operative provisions

SECTION 12-453   MIT AGRICULTURAL INCOME AND MIT RESIDENTIAL HOUSING INCOME - CAPITAL GAINS IN RELATION TO MEMBERSHIP INTERESTS  

12-453(1)  
Subsection (2) applies if:


(a) any of the following provisions apply in relation to an amount:


(i) section 12-448 ;

(ii) section 12-450 ; and


(b) the amount is, or is attributable to, a *capital gain from a *CGT event in relation to an asset that is a *membership interest in an entity; and


(c) just before the CGT event happened, the entity held, directly or indirectly, one or more assets that are any of the following;


(i) *Australian agricultural land for rent;

(ii) a *residential dwelling asset.

12-453(2)  
For the purposes of subsections 12-448(2) and 12-450(2) :


(a) in a case where the *membership interest mentioned in subsection (1) passes the principal asset test in section 855-30 of the Income Tax Assessment Act 1997 immediately before the time the *CGT event happens:


(i) if the assets mentioned in paragraph (1)(c) are all *Australian agricultural land for rent - treat the *capital gain as being wholly attributable to the Australian agricultural land for rent; or

(ii) if the assets mentioned in paragraph (1)(c) are all *residential dwelling assets - treat the capital gain as being wholly attributable to residential dwelling assets; or

(iii) if all the assets mentioned in paragraph (1)(c) are Australian agricultural land for rent and residential dwelling assets, and the *market value of the membership interest that is attributable to Australian agricultural land for rent equals or exceeds the market value of the membership interest that is attributable to residential dwelling assets - treat the capital gain as being wholly attributable to Australian agricultural land for rent; or

(iv) if all the assets mentioned in paragraph (1)(c) are Australian agricultural land for rent and residential dwelling assets, and the market value of the membership interest that is attributable to Australian agricultural land for rent falls short of the market value of the membership interest that is attributable to residential dwelling assets - treat the capital gain as being wholly attributable to residential dwelling assets; or


(b) in any other case - treat the capital gain:


(i) as not being attributable to Australian agricultural land for rent; and

(ii) as not being attributable to residential dwelling assets.

12-453(3)  
For the purposes of subsection (2), in determining whether the *membership interest passes the principal asset test, treat references in section 855-30 of the Income Tax Assessment Act 1997 to *taxable Australian real property as instead being references to an asset that is any of the following:


(a) *Australian agricultural land for rent;


(b) a *residential dwelling asset.

12-453(4)  
For the purposes of this section, in working out the *market value of an asset, work out that market value just before the time the *CGT event mentioned in paragraph (1)(b) happens.




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